#EURUSD @ 1.08127 about to post the highest weekly close since May 2022. (Pivot Orderbook analysis)

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• EUR/USD about to post the highest weekly close since May 2022.
• US Dollar back under pressure, heads for sharp weekly losses.
• US Consumer Confidence rises more than expected in January.

The pair currently trades last at 1.08127.

The previous day high was 1.0867 while the previous day low was 1.0731. The daily 38.2% Fib levels comes at 1.0815, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0783, expected to provide support.

The EUR/USD trimmed daily losses during Friday’s American session, rising back above 1.0800. The euro was holding onto significant weekly gains, headed toward the biggest close since May 2022.

The US Dollar rebounded modestly on Friday after a sharp decline the day before, following US inflation data. The numbers showed the Consumer Price Index slowed down further in December, increasing expectations that the Federal Reserve will hike by 25 basis points in February, instead of 50 bps.

Data released on Friday showed the University of Michigan Consumer Sentiment Index rose in January to 64.6, surpassing expectations of 60.5 and above the 59.7 of December. The numbers helped risk appetite but not the Dollar that pulled back.

After pulling back last week, EUR/USD resumed the upside breaking the 1.0700 area decisively. The chart shows the euro clearly bullish but many technical indicators are in overbought territory.

“Should the pair advance beyond 1.0870, the bullish case will gain adepts. 1.0950 and 1.1020 are the next resistance levels to watch, ahead of the afore mentioned 1.1106. A daily close below 1.0745 will discourage buyers, and could trigger a downward corrective extension, initially towards 1.0640 and later to 1.0515, the 50% retracement of the 2022 slump”, says Valeria Bednarik, Chief Analyst at FXStreet.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0825 at the time of writing. Pair opened at 1.0852 and is trading with a change of -0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0647, 50 SMA 1.0485, 100 SMA @ 1.0182 and 200 SMA @ 1.0311.

The previous day high was 1.0867 while the previous day low was 1.0731. The daily 38.2% Fib levels comes at 1.0815, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0783, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0767, 1.0681, 1.0631
• Pivot resistance is noted at 1.0903, 1.0953, 1.1039

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